What Flood Insurance Does and Does Not Cover – Winston Rowe & Associates CRE Financing
The devastation from Hurricane Harvey is far from over, but property owners in Texas and Louisiana are already facing the daunting task of rebuilding. Now the big question is what's covered?
By: Winston Rowe & Associates
As most property owners know, homeowners insurance doesn't cover flood damage. Even then, the policies provided by the National Flood Insurance Program don't cover everything in your home.
Here's a rundown of what is and isn't covered, according to the Federal Emergency Management Agency (FEMA), which administers the National Flood Insurance Program.
Essential systems in the home, electrical and plumbing systems, furnaces, water heaters, central air conditioners, heat pumps, and sump pumps. It also includes cisterns and the water in them, fuel tanks and the fuel in them, water tanks and pumps.
Refrigerators, ranges, and built-in appliances like dishwashers, washing machines, and dryers are all usually covered and portable window air conditioners and freezers. Food inside refrigerators, however, is not covered.
If you have permanently installed carpeting over an unfinished floor, or any other kinds of carpets over wooden floors, your policy should cover them. Your policy should also include window blinds and curtains.
If you have to replace your cabinets, your policy will pay only for the ones that were damaged. That means that if some cabinets were ruined but others were not affected you might have trouble getting cabinets that match the older ones.
What's Not Covered:
Flood insurance does have eligibility requirements and numerous exclusions. For example, furniture or other personal property located in a basement, crawl space, or "walkout" basement isn't covered, including bookcases, window treatments, carpet, TVs, audio systems.
Federal flood insurance coverage is also capped at $250,000 per building and $100,000 for contents, though you can purchase policies with lower limits.
There are separate deductibles for your dwelling and contents coverage's. Higher coverage limits are available for nonresidential structure and contents policies.
Winston Rowe & Associates prepared this article. They are national commercial real estate financiers and publishers of Free eBooks.
For more information, you can contact them at 248-246-2243 or visit them online at http://www.winstonrowe.com